Numeracy, financial literacy, and financial decision-making
By Anna Lusardi. 2012
295 citations recorded by the source corpus.
Financial decisions, be they related to asset building or debt management, require the capacity to do calculations, including some complex ones. But how numerate are individuals, in particular when it comes to calculations related to financial decisions? Studies and surveys implemented in both the United States and in other countries that are described in this paper show the level of numeracy among the population to be very low. Moreover, lack of numeracy is not only widespread but is particularly severe among some demographic groups, such as women, the elderly, and those with low educational attainment. This has potential consequences for individuals and for society as a whole because numeracy is found to be linked to many financial decisions. Now more than ever, numeracy and financial literacy are lifetime skills necessary to succeed in today's complex economic environment.
Subfields: Accounting
View Paper: https://www.semanticscholar.org/paper/3662eaecbf07787d68b1f20c2192ed8cf8a75883
Citations in the corpus
- Financial Literacy and the Success of Small Businesses: An Observation from a Small Business Development Center (2014, unknown): “The general pattern of inadequacies documented in this journal by Lusardi (2012)”
- Age differences in financial decision making: T he benefits of more experience and less negative emotions (2018, unknown): “…Hibbard, Slovic, & Dieckmann, 2007), assessing inflation (Bruine de Bruin et al., 2010), understanding risks and benefits of medical screening (Reyna, Nelson, Han, & Dieckmann, 2009), and retirement planning and other financial decisions (Lusardi, 2012; Van Rooij, Lusardi, & Alessie, 2011).”
- The Economic Importance of Financial Literacy: Theory and Evidence (2014, unknown): “Moreover, numeracy is especially poor for those with low educational attainment (Christelis, Jappelli, and Padula 2010, Lusardi, 2012).”
- Does self-control predict financial behavior and financial well-being? (2017, unknown): “Most studies have measured financial behavior on a one-item scale, usually related to savings behavior (e.g. Gathergood, 2012; Lusardi, 2012; Rha et al., 2006).”
- Gender, Stock Market Participation and Financial Literacy (2015, unknown): “See Almenberg and Widmark (2011) for a detailed analysis of these two measures and Lusardi (2012) for a general discussion of the relationship between numeracy and financial literacy.”
- Financial literacy, financial advice, and financial behavior (2017, unknown): “Furthermore, the majority of contributions to the literature document a positive correlation between formal education and financial literacy (Lusardi and Mitchell 2011c; Christelis et al. 2010; Lusardi 2012).”
- How does financial literacy impact on inclusive finance? (2021, unknown): “Financial education involves planning, investing, and saving, relying on formal financial methods such as financial calculators, methods, financial education-related seminars to help people make a sound financial decision (Lusardi 2012; Lusardi and Mitchell 2011).”